Tesla Denies Factory Status in Test of North Dakota Franchise Law

Attorneys representing Tesla in a lawsuit against North Dakota, where the EV manufacturer hopes to sell vehicles directly to consumers, have asked a state court to declare it is not, in fact, a manufacturer.
Jacob Orledge of the North Dakota Monitor says the claim is based on a provision of state law that defines a manufacturer as a “person who assembles or imports a motor vehicle and sells it to dealers in the state for resale.”
The Austin, Texas-based factory does not have a dealer network but is allowed to operate as a dealer in more than 30 states. In his report, Orledge notes an assistant state attorney general, Michael Pritcher, appears unimpressed by Tesla’s position.
“Tesla’s interpretation would allow any manufacturer to avoid the statute simply by choosing not to franchise its dealers,” Pitcher says. “That would defeat the whole regulatory structure that the Legislature has adopted.”



